Indian weekly sponge iron export assessment increase by USD 5/MT owing to increase in transportation cost.
Indian sponge iron export offers increase by USD 5-10/MT on weekly basis owing to rise in transportation cost, although buying remains limited. Some deals were reported last week at around USD 330/MT CPT Benapole (Land port of India and Bangladesh).
SteelMint’s current week price assessment for 80 FeM sponge lumps are at around USD 330-335/MT CPT Benapole (land port of Bangladesh and India) against last week’s assessment of USD 325/MT.
“High congestion and shortage of vehicles, have increased transportation cost, thus the suppliers are not willing to deal below at USD 330/MT CPT Benpole. In the start of week a small lots were sold to Dhaka based mill” a source based in Kolkata – East India stated.
SteelMint learned that Bangladesh’s domestic market kept silent post Eid holidays. Steel mills are reluctant to buy scrap and sponge owing to volatility in global steel prices.
Imported scrap reported to be stable and are currently hovering around USD 335-340/MT for HMS, 355-360/MT for Shreded & PnS at USD 365/MT, CFR Chittagong (Bangladesh) basis.
Exports Increase Sharply in 2017
India, one of the largest exporter for Sponge iron has registered a sharp growth in exports in H1 2017 against same preceding last year which was quite low, as per the data maintained by SteelMint statistics .
Statistics showed total bulk exports for Sponge iron in H1 (Jan-Jun) CY 2017 at 250,000 MT, surge by 78% against 140,000 MT in the H1 2016. While, in the H2 (Jan-Jun) of CY 2016, the export was around 170,000 MT.
Even though, Indian domestic billet prices fall sharply, the East India based sponge producers have marginally lower their offers. The manufacturers claim that the deals are quite good for local market amid low stock with them. Hence, the domestic & export offers remain strong.
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